PM hopeful for economy
From AAP
30jan02
PRIME Minister John Howard says he is confident the US economy will recover by mid-year - and benefit the Australian economy at a time when housing growth will moderate.
Speaking in New York, Mr Howard said he was optimistic about the future of the US economy, which was sent into recession following the September 11 terrorist attacks.
He said the on-going low interest rates in the US would help lift the US economy.
His comments came after a two-hour breakfast meeting with former US Secretary of State Henry Kissinger, former US Treasury Secretary Robert Rubin, and Bill McDonough, Deputy Chairman of the Federal Reserve's Open Market Committee which sets US interest rates.
Also present was former US Ambassador to Indonesia, J Stapleton Roy.
"The Australian economy is like all economies, heavily influenced by the American one," Mr Howard said.
"It's not totally driven by the American economy, we've shown that because our growth has been stronger and we've avoided the recession that America is going through at present.
"But if the American economy, as many people believe, does begin a mild recovery about the middle of this year, that will be very beneficial for Australia.
"And it will come at a good time because it is expected that there'll be some moderation of the growth, the strong growth in the housing sector by about the middle of this year.
"I do remain broadly optimistic about the American economy.
"I (have) expressed the view ... that with (US) interest rates having been kept so low for so long, inevitably the animal spirits will take over and lift things and lift things very dramatically."
He said the breakfast meeting touched on international politics and economics.
"I must say they were four people who gave me some wonderful insights from a non-government point of view of the whole world political situation, particularly in relation to terrorism, the Middle East, India and Pakistan," he said.
"And of course the views of Mr McDonough and Mr Rubin on the economy were very valuable.
"It was a great way to start a visit such as this, to get their views."